S&P rates SIPG notes A+

S&P said it assigned an A+ long-term issue rating to a proposed issue of dollar-denominated senior unsecured notes by Shanghai International Port (Group) Co. Ltd. (SIPG).

The outlook is stable.

SIPG operates the port of Shanghai, which is the world's largest port in terms of container throughput for nine consecutive years, the agency noted.

In the proposed transaction, SIPG provides an unconditional and irrevocable guarantee to the notes to be issued by Shanghai Port Group (BVI) Development Co. Ltd.

The issuer is wholly owned by SIPG through its Hong Kong subsidiary, the agency said.

The proceeds from the proposed issuance will be used for refinancing and general corporate purposes, S&P said.

The agency said it rates the proposed issue the same as the issuer rating on SIPG.

Despite SIPG's priority debt ratio of about 50%, S&P said it doesn't notch down its issue rating because it considers SIPG's leverage to be low enough to limit the possibility of any lenders being significantly disadvantaged relative to others.

The agency said it believes the escalating and prolonged U.S.-China trade tensions and slowing Chinese economy may weigh on SIPG's operations this year.

But, the company is expected to withstand the negative impacts of trade tensions and a slowing Chinese economy with moderate margin compression over the next 24 months, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.